2003-02-26 Retirement Board Minutes

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;1. Rosanne Murphy, customer specialist at RMLD, would like to redeposit funds that were refunded to her by the City of Worcester Retirement System on 11/1/74. Upon proper repayment to the Reading Retirement System, the City of Worcester Retirement Board will accept liability for nine months and 14 days of creditable service. The cost to redeposit is $830.47. Rosanne would like to have deductions taken from her bi- weekly paycheck, in the amount of $25, which would result in her balance being paid off in about one year and a few months. - The Board approved the redeposit of funds and deductions of $25 per paycheck (bi- weekly) until the balance is paid off. At last month's meeting the Board discussed the spousal acknowledgment section of the "Choice of Retirement Option" form. Can or should the Board require the spouse's signature to be notarized or require the spouse to come in person to sign the form? Currently, the member sends or brings in the form and there is a spousal signature. As instructed by the Board the administrator contacted a few other administrators from other systems to see how they handle this. Three administrators all require the members to bring in their spouse to discuss all options available, and one administrator requires the spouse's signature to be notarized if the spouse does not come in. - The Board voted to require that the spouse either come in to the Retirement Department to sign the "Choice of Retirement Option" form or have their signature notarized on the form The Board Administrator contacted Kathy Riley at Segal to get a proposal for FYE 2003 & 2004. The fee would be $12,500. - The Board voted to hire the Segal Company for FYE 2003 & 2004. The Board discussed the contribution rate of David Roffi. His rate is currently 5% but it should be 7 %. David first became a member of the Reading Retirement System in December 1972 so his contribution rate was 5 %. In December of 1976 he took a refund. Then in May of 1978 he started work for RMLD and became a member of the retirement system once again. Now David's contribution rate should have been 7% because of the refund he had taken. However, the Board at that time approved his contribution rate at 5 %. At last month's meeting the Board made a motion to change his contribution rate to 7% prospectively and to write hire a letter of explanation. The Board Administrator wrote a letter to David on January 31, 2003. However, David came in to explain why his rate is at 5% and I confirmed this with PERAC. PERAC's Memo #29/1997 explains that prior to January 4, 1983, if a member left active service, took a refund of his contributions, returned to active service within two years of his prior separation from service and was required to make a make -up payment pursuant to G.L. c.32, §3(6)(c), he would be allowed to contribute at the rate that was in effect during his earlier period of membership service. This situation applies to David Roffi so his contribution rate should continue at 5 %. The Board will vote on a COLA increase for retirees at the April 16, 2003 meeting. The Board administrator, in accordance with the provisions of Chapter 127 of the Acts of 1999, will notify the Town Moderator of this meeting date. The Board approved a transfer of $194,743.13 from the Pension Reserve Fund to the Pension Fund. The Board Administrator has received a few requests from former employees of the Town requesting to buy -back previous employment time. The Board members clarified for the Board administrator the buy -back policy of the Reading Retirement Board regarding non -full time employees. The Board re- appointed Daniel Seferian to the Reading Retirement Board. His term will run from 4/1/03 to 3/31/06. Mike Reardon, the new Senior Client Services Officer for the PRIM board, is tentatively scheduled to come to the March meeting to discuss the performance of the funds in PRIT through the period ending December 31, 2002 as well as the returns received by the Reading Retirement System since inception. James N. Boyd, Jr., former Town Treasurer who retired on April 20, 1979 after failing to be re- elected, passed away on 1/26/03. He chose Option A at his retirement. Dorothy Austin, who worked in the Collector's office and retired on July 1, 1977, passed away on 2/21/03. She chose Option C at her retirement but then popped -up to Option A upon the death of her spouse in 1989.